- IFC and the Sovereign Fund will identify high-impact infrastructure projects in strategic sectors in Morocco.
- They will work closely with stakeholders to structure them into viable projects, respecting the best environmental, social and governance standards.
- IFC will also support the establishment of an Infrastructure sub-fund of the Mohammed VI Fund for Investment open to Moroccan and international partners.
A cooperation between the Mohammed VI Fund for Investment and the IFC has been established to find and fund sustainable infrastructure projects in Morocco.
One of the most important segments of the Moroccan economy is the infrastructure industry. Large capital investments are necessary, necessitating more private sector investment alongside public investment.
Infrastructure projects in Morocco
In accordance with this agreement, the Sovereign Fund and IFC will find high-impact infrastructure projects in Morocco industries.
“IFC is supporting the Government of Morocco to mobilise private investment in the infrastructure sector. This new partnership signed between the Mohammed VI Fund for Investment and IFC is a key step to develop and finance high-impact infrastructure projects in the Kingdom,” IFC Regional Vice President for Africa Sérgio Pimenta said.
They will work closely with stakeholders to structure them into viable projects, respecting the best environmental, social and governance standards to mobilise private capital and stimulate inclusive and sustainable growth.
IFC will also assist in establishing the Mohammed VI Fund for Investment’s infrastructure sub-fund, which will be accessible to Moroccan and foreign investors. It aims to exchange best practices for structuring, leading, and funding ethical infrastructure projects.
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IFC interest in Morocco
“This partnership with IFC meets the objectives of the Mohammed VI Fund for Investment to attract leading national and international investors to its side to contribute to future investment projects and leverage the equity invested. It also broadens the range of tools available for designing and structuring viable infrastructure projects in the form of public-private partnerships, in order to facilitate and improve the conditions of their financing and their execution. Finally, this partnership demonstrates IFC’s strong interest in the infrastructure sector in Morocco and its confidence in the approach adopted by the Fund, its managerial structures and its governance model,” Managing Director of the Mohammed VI Fund for Investment Mohamed Benchaâboun said.
A key element of the recovery strategy unveiled by King Mohammed VI in July 2020 is the Mohammed VI Fund for Investment. Its initial commitment from the State is $1.5 billion, and it eyes an additional $3 billion in private finance. Overall, it projects a total investment envelope of $12 to $15 billion.
Identify high-impact projects in Morocco
This collaboration builds on an agreement that IFC and Morocco’s Ministry of Economy and Finance agreed in June 2021. It aims to aid in the creation of the Fund and support the selection of high-impact projects and possible investors.
As part of this protocol, the World Bank Group had mobilised experts to share lessons learned on strategic investment funds.
IFC is assisting critical infrastructure projects with a focus on territorial development and green recovery while collaborating closely with Morocco. Since 2020, IFC has invested more than $200 million in sustainable infrastructure projects in Morocco.
